Market News

Cattle, hog futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher, supported by the USDA’s suspension of live cattle imports from Mexico due to New World screwworm.  June live cattle closed $2.15 higher at $216.82 and August live cattle closed $2.02 higher at $211.60.  August feeder cattle closed $6.07 higher at $306.37 and September feeder cattle closed $6.07 higher at $305.10. 

Direct cash cattle trade activity was quiet Monday.  Buyers and sellers were busy preparing for the week’s business.  Significant trade volume will likely be delayed until the second half of the week. 

At mid-session at the Oklahoma National Stockyards, feeder steers were $4 to $6 higher and feeder heifers were $2 to $6 higher.  The USDA says demand was very good for feeder cattle.  Quality ranged from plain to attractive.  Steer and heifer calves were mostly steady.  Receipts were up on the week, but down on the year. Feeder supply included 52 percent steers and 78 percent of the offering was more than 600 pounds.  Medium and Large 1 feeder steers 655 to 694 pounds brought $320 to $353 and feeder steers 801 to 848 pounds brought $290 to $307.  Medium and Large 1 feeder heifers 651 to 692 pounds brought $297 to $327 and feeder heifers 759 to 798 pounds brought $275 to $289.

Boxed beef closed sharply higher on solid demand for moderate offerings.  Choice was $2.17 higher at $348.14 and Select closed $4.06 higher at $335.23.  The Choice/Select spread is $12.91.  Estimated cattle slaughter was 99,000 head – down 10,000 on the week and down more than 15,000 on the year.

Lean hog futures closed higher on expectations for improved export demand from China. June lean hogs closed $.72 higher at $98.30 and July lean hogs closed $2.05 higher at $102.47. 

Cash hogs closed higher with a solid negotiated run.  Demand continues to be the focal point for the market.  While the US and China have agreed to reduce tariffs and retaliatory tariffs significantly, it’s for 90 days and there is still plenty of work to be done on the deal.  Demand for U.S. pork, outside of China, has been relatively strong, which is supportive to prices.  There continues to be optimism that domestic demand could see a boost as summer grilling season is just around the corner and pork remains a very competitively priced protein in the retail space. The industry is also monitoring the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct were $.82 higher with a base range of $88 to $98 and a weighted average of $95.29 and the Eastern Corn Belt had no comparison but a weighted average of $92.24.  Prices at the Iowa/Minnesota and the Western Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $3 higher at $66. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $40 to $52.  Barrows and gilts were steady with mdoe3rate demand for moderate offerings at $52 to $62.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower – down $1.32 at $96.51.  Loins, butts, ribs, picnics, and hams were lower.  Bellies were firm. Estimated hog slaughter was 466,000 – down 16,000 on the week and up about 1,500 on the year.